Ben, Jerry, Alex and Jorge

The wily acquirers at 3G found a soft target in the Anglo-Dutch group. Even with generous assumptions about lifting Unilever’s margins, the $143 bln deal would push debt above five times EBITDA. Kraft’s owners, including Warren Buffett, will need to pitch in to sweeten the bid.

Context News

Unilever said on Feb. 17 it had rejected a $143 billion takeover bid from U.S. rival Kraft Heinz because the proposal lacked "merit, either financial or strategic."

Kraft Heinz, which is 50.9 percent owned by Brazil's 3G and investor Warren Buffett, had offered $30.23 in cash and 0.22 shares in the merged company for each outstanding Unilever share. Unilever said that represented a premium of 18 percent.

Unilever's London-listed shares were trading at 37.26 pounds at 1515 GMT on Feb. 17, up 11.2 percent on the previous day's close. Kraft Heinz shares were up 8.1 percent, at $94.32.